January 13, 2014
Several publications, both large circulation newspapers and niche sources, reported over the weekend on Federal approval of Maryland’s initiative to control hospital costs.
In an article entitled “Maryland Experiments With Capping Hospital Spending,” the Wall Street Journal (1/10, Dooren, Schatz, Subscription Publication) reported that the Centers for Medicare and Medicaid Services (CMS) approved a waiver to Maryland to set its own Medicare rates for hospitals. Maryland agreed to save $330 million in Medicare cost savings over five years. The plan waiver was supported by the state’s major hospitals and insurance companies.
The Washington Post (1/10, Kliff) “Wonkblog” noted that, unlike other states, “in Maryland, all customers — whether a private insurance plan, public program or uninsured patient — pay the same price.” A form of the program started in the 1970s and has generated substantial savings for the state.
Kaiser Health News (1/10, Hancock) described the CMS waiver with Maryland as “unprecedented.”
The Baltimore Sun (1/10) reported that CMS Deputy Administrator and Director Jonathan Blum said Friday that Maryland could serve as a national test case: “We want Maryland to be the basis for other states … to test the boundaries of what it means to lower total cost of care and boost total quality of care.”
However, CQ (1/10, Reichard, Adams, Subscription Publication) reported that Maryland’s example could be “hard-to-follow.”
Martin O’Malley wrote an op-ed in the Baltimore Sun (1/11, O’Malley) explaining the state’s program and its attendant benefits.
Article courtesy American Medical Association
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